posted on Feb, 18 2009 @ 03:34 PM
which still does not un-freeze the credit markets...
the banks/financial houses are only using the worst case
derivatives& MBS (mortgage backed securities) as a guideline for their projected ledger balances,
the banks, etc... either do not desire, or completely refuse to
open their books concerning these as yet un-monetized 'toxic assets'
They may be forced to (open the books) If the Geithner policy is put into effect,
where each banks balance sheets would be scrutinized in detail
and then be given a 'Healthy' or 'Stressed' rating by the Fed/Treas.
here's a What-If conspiracy for youse....
We are aware the holders of these 'Toxic Assets'
do not want a bunch of snooping into the make-up of the Derivatives, especially the parts which include the diced up underlying MBSecurities...
because regulators will find that the 'Sum-of-the-parts-Is-greater-than-the-whole',
in other words, there are perhaps 150% of parts of individual mortgages, pieced out among perhaps ~50 seperate derivatives containing MBS...
and that constitutes Fraud....
and a mammomoth ammount of false value (Trillion$$) spread over 100s of thousands/or even/Millions of these 'Toxic Asset' pieces of paper.
No wonder the credit markets are frozen...the banks don't want to value these products individually, they want to have these 'toxic assets'
completely Sealed... from prying eyes,
the banks MAY agree to temporarily transfer stacks of thes derivitive/MBSs
into the Fed/Treasury Vault to 'Hold' ->> with an agreed future return of the asset to the bank, minus a small transaction fee.....
But that's about the only light-of-day the banks will allow concerning the Toxic Assets (estimated in the $200 trillion range) we are all concerned